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Hindalco Industries Ltd.

BSE: 500440 | NSE: HINDALCO |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE038A01020 | SECTOR: Aluminium

BSE Live

Jun 18, 16:00
371.65 2.35 (0.64%)
Volume
AVERAGE VOLUME
5-Day
701,030
10-Day
620,293
30-Day
810,542
739,728
  • Prev. Close

    369.30

  • Open Price

    369.30

  • Bid Price (Qty.)

    372.05 (1)

  • Offer Price (Qty.)

    371.65 (172)

NSE Live

Jun 18, 15:59
371.35 2.10 (0.57%)
Volume
AVERAGE VOLUME
5-Day
14,910,724
10-Day
12,529,905
30-Day
18,848,448
22,723,111
  • Prev. Close

    369.25

  • Open Price

    368.75

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    371.35 (44309)

Annual Report

For Year :
2019 2018 2017 2016 2015 2014 2013 2012 2011

Auditor's Report

1) We have audited the accompanying financial statements of HINDALCO INDUSTRIES LIMITED (the Company), which comprise the Balance Sheet as at 31st March, 2014, and the Statement of Profi t and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information. Management''s Responsibility for the Financial Statements 2) Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash fl ows of the company in accordance with the accounting principles generally accepted in India, including Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 (the Act) read with the General Circular 15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013 and Accounting Standard (AS)-30 to the extent it relates to Derivative Accounting , as prescribed by The Institute of Chartered Accountants of India. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the fi nancial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. Auditors'' Responsibility 3) Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is suffi cient and appropriate to provide a basis for our audit opinion. Opinion 4) In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: a) In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2014. b) In the case of the Statement of Profi t and Loss, of the profi t for the year ended on that date, and c) In the case of the Cash Flow Statement, of the cash fl ows for the year ended on that date. Emphasis of Matter 5) Attention is invited to Note No. 38 of Notes to Financial Statements explaining that in compliance to scheme of arrangement u/s 391 to 394 of the Companies Act 1956 approved by the Hon''ble Bombay High Court vide order dated 29th June 2009, the management of the Company during the year has identifi ed and adjusted provision for diminution in the carrying value of Investment in one of the Subsidiary, amounting to Rs. 86.06 Crore against Business Reconstruction Reserve. This has resulted in the profi t before tax and profi t after tax for the year being higher by Rs. 86.06 Crore. Our opinion is not qualifi ed on this matter. Report on other Legal and Regulatory Requirements 6) As required by the Companies (Auditor''s Report) Order, 2003 (the Order) issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specifi ed in paragraphs 4 and 5 of the Order. 7) As required by section 227(3) of the Act, we report that: a) We have obtained all the information and explanations which, to the best of our knowledge and belief were necessary for the purpose of our audit. b) In our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books. c) The Balance Sheet, Statement of Profi t and Loss and Cash Flow Statement dealt with by this report are in agreement with the books of account. d) In our opinion, the Balance Sheet, Statement of Profi t and Loss and Cash Flow Statement comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 (the Act) read with the General Circular 15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013 and Accounting Standard (AS)-30 to the extent it relates to Derivative Accounting , as prescribed by The Institute of Chartered Accountants of India.. e) On the basis of written representations received from the directors as on 31st March 2014, and taken on record by the Board of Directors, none of the directors is disqualifi ed as on 31st March 2014, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956. Annexure referred to in paragraph 6 under the heading Report on other legal and regulatory requirements of our report of even date. Re: Hindalco Industries Ltd. (the Company) I. (a) The Company has maintained proper records showing full particulars including quantitative details and situation of Fixed Assets. (b) Fixed Assets have been physically verifi ed by the management according to a phased program designated to cover all items over a period of three years, which in our opinion is reasonable having regard to size of the Company and the nature of its assets. Pursuant to the program, a portion of fi xed assets has been physically verifi ed by the management during the year and no material discrepancies between book record and physical inventory has been noticed. (c) No substantial part of fi xed assets has been disposed of during the year, which has bearing on the going concern assumption. II. (a) Physical verifi cation of inventory, (except stocks in transit and stocks lying with third parties, confirmation for which has been obtained) have been conducted at reasonable intervals during the year, by the management/ outside agencies. (b) In our opinion, the procedures of physical verifi cation of inventory followed by the management are reasonable and adequate in relation to the size of the Company and nature of its business. (c) The Company has maintained proper records of inventory. No material discrepancies were noticed on physical verifi cation of inventory as compared to book records except for shortage in coal amounting to Rs.12.51 Crore and the same has been properly dealt with in the books of accounts. III. (a) The Company has not granted any loans, secured or unsecured to companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956. (b) The Company has not taken any loans, secured or unsecured from companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956. IV. On the basis of checks carried out during the course of audit and as per explanations given to us, we are of the opinion that there is adequate internal control system commensurate with the size of the Company and the nature of its business; for the purchase of inventory and fi xed assets and for the sale of goods and services. Further, on the basis of our examination of the records of the Company and according to the information and explanation given to us, no major weakness has been noticed or reported in the internal controls except as disclosed in the paragraph XXI of this report. V. (a) In our opinion and according to the information and explanation given to us, the transactions that need to be entered into register maintained under section 301 of the Companies Act, 1956 have been so entered. (b) As per the information and explanations give to us and the records of the Company examined by us, there are no contract or arrangements made for transactions exceeding Rupees 5,00,000 in respect of each party, for sale and purchase of goods and services in pursuance of section 301 of the Company''s Act,1956. VI. The Company has not accepted any deposit from the public within the meaning of section 58A and 58AA of the Companies Act 1956 and the rules framed there under. VII. The Company has an internal audit system, which in our opinion is commensurate with the size and nature of its business. VIII. We have broadly reviewed the books of accounts maintained by Company in respect of product, where pursuant to the rule made by the Central Government of India the maintenance of cost records has been prescribed under section 209 (1) (d) of the Companies Act 1956 and are of the opinion that, prima facie, the prescribed records have been maintained. We have, however, not made a detailed examination of the records with a view to determine whether they are accurate or complete. IX. (a) According to the information and explanations given to us and on the basis of our examination of the books of account, the Company is generally regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employee''s State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other statutory dues with the appropriate authorities. According to the information and explanations given to us and the records of the Company examined by us, no undisputed statutory dues as above were outstanding as at 31st March, 2014 for a period of more than 6 months from the date they became payable. (b) According to the information and explanations given to us, the dues of Sales Tax, Income Tax, Customs Duty, Wealth Tax, Excise Duty, Service Tax and Cess which have not been deposited on account of any dispute and the forum where the dispute is pending as on 31st March 2014 are as under: Name of the Statute Nature of Dues Amount (Rs. in Crore) Central Sales Act and Local Sales Tax 0.40 Sales Tax Act 15.47 6.13 47.35 The Central Excise Act, 1994 Excise Duty 155.31 8.32 37.65 45.33 The Service Tax under the Service Tax 0.67 Finance Act, 1994 88.48 20.09 The Income Tax Act, 1961 Income Tax 691.24 Adhosanrachna Vikas Chhattisgarh 0.26 Evam Parayavaran Upkar Development and Adhiniyam, 2005 Environment Cess Shakti Nagar Special Area Cess on Col 11.17 Development Authority The Building and Other Cess 100.00 Construction Workers (Regulation of Employment and Conditions of Service) Act & Rules (BOCW Act) Name of the Statue Period to which the amount relates Forum where the disputes are pending Central Sales Act and Local Sales Tax Act 2003-2004 The Supreme Court 1986-1987, 1989-1991, 1992-1993, 1995- The High Court 1996, 2003-204, 2004 -2005, 2006-2007 1994-1995, 1997-1998 to 2000-2001, Tribunal 2001-2002 to 2008-2009 1991-1992, 1994-1995 to 2012-2013 Asst Commissioner/ Commissioner/ Revisionnery Authorities Level The Central Excise Act, 1994 1999-2000 to 2007- 2008 The Supreme Court 1994-1995, 2000-2001, 2007-2008 to The High Court 2011-2012 1988-1990, 1991-1992, 1993-1994, 1999- Customs, Excise and Service Tax 2000 to 2011-2012 Appeellate Tribunal (CESTAT) 1987-1988, 1996-1997 to 2009-2010, Asst Commissioner/ 2011-2012, 2012-2013 Commissioner/ Revisionnery Authorit -ies Level The Service Tax under the Finance Act, 1994 1997-2000, 2002-2008 The High Court 2002-2003 to 2011- 2012 Customs, Excise and Service Tax Appeellate Tribunal (CESTAT) 2001-2002, 2004-2005 to 2006-2007, Asst Commissioner/ 2008-2009 to 2011- 2012 Commissioner/ Revisionnery Authorities Level The Income Tax Act, 1961 2008-2009, 2009-2010 CIT (Appeals) Adhosanrachna Vikas Evam Parayavaran Upkar Adhiniyam, 2005 Shakti Nagar Special Area Development Authority 2005-2006 to 2011- 2012 The Supreme Court 1997-1998 to 2013-2014 The Supreme Court The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act & Rules (BOCW Act) 2011-2012 The Supreme Court X. The Company does not have any accumulated losses and has not incurred cash losses in the current financial year and in the immediately preceding financial year. XI. The Company has not defaulted in repayment of dues to Financial Institutions or Banks or Debenture holders. XII. According to the information and explanations given to us, the Company has not granted any loans or advances on the basis of security by way of pledge of Shares, Debentures and other Securities. XIII. The provisions of any special statute applicable to chit fund/nidhi/mutual benefit fund/societies are not applicable to the Company. XIV. The Company is not in the business of dealing or trading in Shares, Securities, Debentures and other Investments. XV. In our opinion and according to the information and explanations given to us, the terms and conditions on which the Company has given corporate guarantees for loans taken by its Subsidiary from Banks and Financial Institutions are not prima facie prejudicial to the interest of the Company. XVI. Based on information and explanations given to us and records of the Company examined by us, in our opinion, the term loans have been applied for the purpose for which they were obtained. Though unutilized funds which were not required for immediate use for capital expenditure have been temporarily invested in mutual funds / bank deposit. XVII. According to the information and explanations given to us and on the basis of our overall examination of the Balance Sheet and Cash Flow Statement, we report that no funds raised on short term basis have been used for long term investment of the Company. XVIII. During the year under Audit, the Company has made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act 1956. The price at which shares have been issued on conversion of warrants, has been determined as per the Securities and Exchange board of India (Issue of Capital and Disclosure Requirement) Regulation, 2009, which in our opinion is not prejudicial to the interest of the Company. XIX. The Company has created securities / charges in respect of secured debentures issued. XX. The Company has not raised any money by Public Issues during the year. XXI. During the course of our examination of the books and records of the Company, carried out in accordance with the Generally Accepted Auditing Practice in India, and according to the information and explanations given to us, we report that the following fraud on the Company was detected during the year-: In the matter of weighment and recording of receipt of coal purchased at one of its unit where contractor/ transporter and some of the Company''s employees were involved. As explained by the management, the impact of this could not be ascertained /quantifi ed at this stage as the matter is under investigation. However, the shortage observed in coal inventory on physical verifi cation amounting to Rs. 12.51 Crore has been fully provided for in the books of accounts. As explained by the management, necessary steps have been taken to strengthen the internal control systems in these regard and it is not expected to have any impact on the financial results of the Company going forward. For SINGHI & CO. Chartered Accountants Firm Registration No.302049E (RAJIV SINGHI) Place: Mumbai Partner Date: 29th day of May, 2014 Membership No. 53518